When an ASRS retiree returns to work for an ASRS employer and meets active membership criteria, active contributions must begin, and the member’s pension is suspended. At that point, the member will not receive a pension benefit until they either terminate employment or reduce their hours (as outlined below) and re-retires.
However, there is an exception to this rule. Under very specific conditions, an ASRS retiree can qualify to remain retired and keep receiving their pension benefit while also working for an ASRS employer: it’s called the 20/20 Rule. A.R.S. §38-766 allows all retirees who have terminated employment to return to work without suspending their pension if the conditions outlined below are met. Please note that it is the responsibility of both the retiree and employer to ensure compliance. A retiree’s pension will be suspended if any of the following conditions are met:
- Member did not reduce hours below 20/20
- Member worked some 20-or-more-hour-weeks prior to retirement and then, after retirement but in the same fiscal year, works 20-or-more-hour weeks so that the total weeks of at least 20 hours worked before and after retirement equals or exceeds 20 weeks
- Member meets or exceeds 20/20 in any fiscal year after retirement without having attained normal retirement and having been terminated from employment for at least 365 days
In addition, please remember that all ASRS employers are required to pay an Alternate Contribution Rate (ACR) for all retired ASRS members who return to work in any capacity, are not actively contributing, and in any position that is similar in duties and responsibilities to that of a position ordinarily filled by an employee
